Can loyalty programs help in understanding buyer behavior? The answer to the question is a resounding “Yes!”
By collating and analyzing generated through digital loyalty programs, more particularly B2B loyalty programs, B2C loyalty programs, and channel loyalty programs, businesses can understand the buying behavior of their customers.
Apart from buying behavior, the data obtained by digital loyalty programs can provide key insights into the tastes and preferences of customers and business partners. Businesses can use the data to identify the products and services that are most popular among customers and the most effective loyalty rewards.
At LoyaltyXpert, we have helped many businesses leverage B2B loyalty programs, B2C loyalty programs, and channel loyalty programs to understand buyer behavior data. In this blog post, we have detailed the ways you can leverage a sophisticated digital loyalty program to understand customer behavior data. Read on to gain valuable insights.
How a digital loyalty platform can help businesses to benefit from buyer behavior data?
Smart businesses leverage their digital loyalty programs to collect, analyze, and monitor buying behavior data. By doing so, they can benefit in a wide number of ways.
1. Segment your customers and business partners
Buyer behavioral data can help businesses to segment their customers as per various demographic factors such as age, gender, location, education, and profession as well as other parameters such as spending habits and consumption patterns.
After segmenting their customers, businesses can create different buyer personas and create a clear image or representation of their perfect customer. After that, they can align their marketing and sales campaigns to target their ideal customers and attract them.
2. Offer personalized and relevant rewards
Businesses that leverage loyalty programs to collect, analyze, and understand their customers’ and business partners’ data are better equipped to offer tailored and relevant rewards
A study conducted by Accenture found that 54 percent of buyers are willing to share personal information and buying behavior data to get customized offers.
3. Re-engage existing and previous customers
A recent study found that eight out of every ten customers who have stopped buying from a brand said that the business could have done something to engage with them. Now, come to think of it, what could a company do to retain its old customers? Re-engage with them, of course. The question is “how?” That’s where data comes into play.
Businesses that collect, analyze, and understand buying behavior data can re-engage with their existing and previous customers as well as business partners far more effectively than businesses that don’t leverage data.
4. Recommend relevant and useful products
By collecting, analyzing, and understanding buying behavior data, businesses can recommend relevant and useful products to their customers and business partners.
Buyer behavior data can help businesses understand what their clients need and what they are looking for. Based on that, businesses can make highly relevant and targeted product recommendations. The targeted recommendations can enhance engagement between businesses and their clients.
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5. Create timely promotions
For businesses, creating timely promotions is extremely important. Businesses that track and analyze sales data to understand the exact time at which promotional codes are redeemed are well-equipped to create time-sensitive promotions.
By creating time-sensitive promotions, you can incentivize desired actions and grow your business by leaps and bounds. Apart from that, data-driven promotional strategies can help you effectively personalize your marketing content, and messages, as well as retarget previous customers.
6. Map out the customer journey
Customers’ and business partners’ interactions with loyalty programs provide extremely valuable insights into customer experience and customer journey. Companies that use their loyalty programs to collect and analyze data can easily map out the customer journey and understand the customer experience they provide. Apart from that, they can use the insights to enhance both the customer experience and customer satisfaction.
A study conducted by the Aberdeen Group revealed that businesses that mapped out customer journeys registered 56 percent higher revenue from cross- and up-sells and 3.5 times more revenue from customer referrals.
7. Forecast trends
Businesses can leverage the data they obtain from their digital loyalty programs to predict their customers’ and business partners’ future buying habits. That’s where a sophisticated digital loyalty platform can come in extremely handy as it can provide accurate data crucial to forecasting timely trends.
The trends can help you to gain a competitive advantage and design effective strategies to retain your customers as well as acquire new ones. Apart from revealing time-based trends, you can use your customers’ referral and loyalty program activities to maximize conversions across all sales and marketing initiatives.
All in all,
As the famous saying goes, “data is the new oil.” A business that knows how to leverage buying behavior data, as well as other available information, can leave its competitors behind. This is where a sophisticated loyalty platform can help in tapping into the vast repository of data.
At LoyaltyXpert, we created high-quality loyalty programs for many businesses and helped them tap into the data goldmine by using our sophisticated loyalty platform. If you want to understand buying behavior by leveraging loyalty programs, contact us or book a free demo today.